€6 Million Investment Sparks Controversy: Which Deeptech Startups Will Soar and Which Will Crash?

The landscape of European tech investment is evolving, with significant moves made recently by LUMO Labs and Spain’s Society for Technological Transformation (SETT). LUMO Labs has announced that its LUMO Fund has successfully secured a €6 million investment from SETT, a public entity under Spain's Ministry for Digital Transformation and the Civil Service. This funding is earmarked for nurturing early-stage startups across Spain and other European countries, particularly those concentrating on digital deeptech innovations.

The LUMO Fund, managed by the Dutch venture capital firm LUMO Labs, specifically targets pre-seed and seed-stage ventures that are developing scalable and financially sustainable operating systems, infrastructure, and platforms. The fund emphasizes innovations in fields such as artificial intelligence, digital security, and the Internet of Things, supporting startups that tackle significant societal challenges.

SETT’s investment is part of a broader strategy to enhance funding and entrepreneurial support for early-stage companies throughout Europe, especially in Spain. Startups in digital deeptech are viewed as crucial for driving economic growth, resilience, and digital transformation within the region. The partnership between SETT and LUMO Labs signifies a commitment to accelerating the development of scalable Spanish companies with global ambitions while enhancing liquidity in the technology market.

Founded by former entrepreneurs Andy Lurling and Sven Bakkes, LUMO Labs focuses on investments that are impact-driven. They actively coach and connect founders within the startup ecosystem. With the upcoming launch of its second fund in 2024, the firm has appointed Jorge Blasco as Partner for Southern Europe. Blasco played a pivotal role in establishing the partnership with SETT and continues to provide support to portfolio companies from the firm’s office located in the Norrsken building in Barcelona.

SETT’s financial commitment is funneled through the Next Tech fund, an initiative aimed at stimulating private investment and improving access to financing in strategic sectors of Spain’s digital transformation efforts. This program is a component of Spain’s Recovery, Transformation and Resilience Plan, which is financed through the European Union’s Next Generation EU program.

“We are very grateful for this support from SETT, and excited to be able to deepen our commitment to backing Spanish startups at their earliest stages, closing the funding gap to accelerate early validation and helping them scale into global category leaders. First as entrepreneurs and in recent years as investors, we have been closely following early-stage innovation across Europe. Spain stands out for its strong tech focus and sectoral diversity, incredibly talented engineers, and the pace at which the ecosystem is maturing. This investment is a strong vote of confidence in our thesis that Spain is entering a defining moment for pre-seed and seed innovation.”

— Andy Lurling, Founding Partner, LUMO Labs

“I am proud to celebrate this milestone in collaboration between the Netherlands and Spain — a shared commitment to driving innovation and empowering the startup ecosystems in both our countries.”

— Roel Nieuwenkamp, Ambassador to Spain, Dutch Ministry of Foreign Affairs, Madrid

“We are deeply grateful for the trust that SETT has placed in LUMO Labs. With this commitment, Spain is sending a clear signal that it is ready to lead in purpose-driven innovation and disruptive technologies. This investment validates our mission to combine impact with digital deep tech and strengthens our ability to support exceptional Spanish entrepreneurs who are building transformative companies.”

— Andy Lurling, Founding Partner, LUMO Labs

This new investment reflects the growing importance of Spain as a hub for high-impact entrepreneurship, facilitated through a public-private co-investment model. As early-stage digital deeptech companies gain traction, support from entities like SETT and LUMO Labs will be instrumental in helping them transition from ideation to scaling, potentially positioning Spain as a pivotal player in the European tech ecosystem.